JP Morgan, in its latest report released on February 9, forecasted a significant devaluation of the Egyptian Pound, predicting it to reach between 45 and 50 pounds to the US dollar. Accompanying this forecast, the bank also anticipates that Egyptian banks will raise deposit interest rates by an additional 2%, reaching 23.5%.
The report pointed out the expectation that the Egyptian government will focus on reducing off-budget spending in the coming period, fulfilling one of the key demands of the International Monetary Fund.
The report noted that the anticipated devaluation of the pound, along with the substantial year-on-year inflation rates, are likely to contribute to a slowdown in inflation rates in the upcoming period.
